Pangkal Pinang, August 5, 2026 — The Statistics Indonesia (BPS) office for the Bangka Belitung Islands Province released the latest data showing that the Bangka Belitung economy grew by 4.01 percent (year-on-year) in the second quarter of 2026. "The economy is growing, and poverty is declining," stated Sugeng Arianto, Head of BPS Bangka Belitung Islands Province, during the release of the agency's Official Statistical News on Thursday (August 5, 2026).
Economic Growth Driven by Household Consumption
Bangka Belitung's economy grew by 4.01 percent year-on-year in the second quarter of 2026. On a quarter-to-quarter (q-to-q) basis, the Gross Regional Domestic Product (GRDP) growth rate reached 5.02 percent, an increase from the previous quarter, which had contracted by 3.88 percent. By economic sector, the Accommodation and Food & Beverage sector recorded the highest year-on-year growth at 33.29 percent, followed by the Government Administration, Defense, and Compulsory Social Security sector at 15.99 percent, and the Construction sector at 14.58 percent. Sectoral growth was driven by the proliferation of food stalls and coffee shops, the massive scale of the Free Nutritious Meal (MBG) Program, and an increase in the number of Nutrition Fulfillment Service Units (SPPG). Additionally, the conversion of honorary staff into Government Employees with Work Agreements (PPPK) drove up personnel expenditure compared to the previous year, as PPPK salary and allowance rates—including the "13th-month" salary—are higher than those for honorary staff. Furthermore, private-sector physical development—such as housing, shophouses, and business premises—continued at a vigorous pace. Government spending on physical projects this quarter increased compared to the same quarter last year, a period that had been marked by a budget deficit. From an expenditure perspective, the household consumption component remained the primary driver of year-on-year (y-on-y) growth, expanding by 3.26 percent and accounting for the largest share of the Gross Regional Domestic Product (GRDP) at 50.59 percent. Exports of goods and services held the second-largest share at 35.05 percent, while Gross Fixed Capital Formation ranked third, contributing 23.10 percent. In the second quarter of 2026, the government consumption expenditure component recorded the highest growth rate at 13.49 percent. This growth was driven by the disbursement of the 13th-month salary for civil servants (ASN), increases in regional budget (APBD) spending on goods, services, and capital, government transfer payments to households (such as the Free Nutritious Meal program/MBG), and rising salary expenditures for government employees with work agreements (PPPK).
The economic structure of Bangka Belitung is dominated by three major business sectors: Manufacturing Industry (21.58 percent); Agriculture, Forestry, and Fisheries (19.85 percent); and Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles (15.25 percent). Together, these three sectors contribute 56.68 percent to the economy.
Poverty Declines
The poverty rate in Bangka Belitung Islands Province stood at 4.75 percent in March 2026, a decrease of 0.02 percentage points compared to September 2025. The number of poor people also fell by 40, dropping from 74.65 thousand to 74.61 thousand. Despite this decline, the poverty line in Bangka Belitung remained the second highest in the country, reaching Rp1,012,331 per capita per month. This figure is well above the national poverty line of Rp669,235 per capita per month. Food commodities remain the primary determinant, contributing 73.34 percent to the poverty line. The poverty line in rural areas also remains higher than in urban areas. Overall, the poverty line in Bangka Belitung (Babel) rose by 2.01 percent compared to September 2025. This situation indicates that although the poverty rate has declined, the minimum cost required to meet basic needs continues to rise.
Nationally, Babel’s poverty rate ranks fifth lowest, trailing only Bali, South Kalimantan, DKI Jakarta, and Riau Islands. At 4.75 percent, Babel’s poverty rate remains well below the national average of 8.07 percent. However, the reduction in poverty has not been uniform.
Poverty remains higher in rural areas than in urban areas. The urban poverty rate fell by 0.06 percentage points, whereas the rural rate actually rose by 0.04 percentage points. This disparity indicates that rural poverty issues still require greater attention. Regarding the depth of poverty, the Poverty Depth Index declined in March 2026. This means that the average expenditure of the poor is moving closer to the poverty line, thereby narrowing the gap between their economic status and the poverty threshold.
The Poverty Severity Index showed a decline in both urban and rural areas. This drop in the severity index indicates that expenditure distribution among the poor has become more equitable in both urban and rural settings.
Expenditure Inequality
Expenditure inequality in the Bangka Belitung Islands Province was recorded at 0.214 in March 2026, the same level as in September 2025. This figure positions Bangka Belitung as the province with the lowest level of inequality in Indonesia. Over the past five years, expenditure inequality in the province has steadily improved; the Gini Ratio fell by approximately 0.042 points, indicating a more equitable distribution of household expenditure.
However, a disparity remains between urban and rural areas, with inequality levels higher in urban areas than in rural ones. In March 2026, the urban Gini Ratio increased, while the rural Gini Ratio remained unchanged compared to September 2025. The Gini Ratio ranges from 0 to 1; a value closer to 1 indicates higher inequality, whereas a value closer to 0 signifies a more equitable distribution of expenditure.
Regarding expenditure distribution, the situation for low-spending groups has improved. The expenditure share of the bottom 40 percent group increased compared to September 2025, while the shares for the middle 40 percent and top 20 percent groups declined. These figures suggest that expenditure inequality in Bangka Belitung is relatively low and trending toward improvement in the long term, although the urban-rural gap still warrants attention.
Unemployment Conditions
In terms of employment, the labor market situation in Bangka Belitung shows signs of improvement. The labor force reached 817,743 people in May 2026, an increase of 1,450 people compared to February 2026. The Labor Force Participation Rate (LFPR) stood at 68.21 percent in May 2026, reflecting the participation of the working-age population in the labor market. Over the past year, the LFPR trended upward for men but declined for women. The employed population reached 783,005, an increase of 893 people over the past year (February 2026–May 2026). During this period, the sectors recording the highest growth in employment were Manufacturing, Financial and Insurance Activities, and Transportation and Storage, with increases of approximately 4.12 thousand, 3.46 thousand, and 2.95 thousand workers, respectively.
A total of 50.31 percent of workers remain in the informal sector, highlighting the need to improve the quality of decent and protected employment. Regarding education, only 15.75 percent of workers hold a Diploma or higher qualification, while 50.68 percent have an education level of junior high school or lower.
In May 2026, the number of unemployed persons in Bangka Belitung stood at 34.40 thousand, with an Open Unemployment Rate (TPT) of 4.21 percent—an increase compared to February 2026. The female TPT rose, whereas the male TPT fell. Regionally, the rural TPT showed an increase, while the urban TPT showed a decline.
Challenges and Future Agenda
Bangka Belitung needs to strengthen its economic structure—currently reliant on consumption—by fostering diversification in productive sectors to ensure resilience against seasonal fluctuations. Regarding employment, the strategic agenda focuses on enhancing workforce quality through education and training, as well as formalizing jobs to reduce the dominance of the informal sector. Meanwhile, the reduction in poverty rates must be accompanied by a strengthening of public purchasing power. Poverty alleviation policies should not merely aim to reduce the number of poor people but must also boost the income and productivity of poor households, particularly in rural areas where poverty levels remain higher. At the same time, the region's low expenditure inequality should be preserved as an asset for development. The challenge lies in ensuring that this equitable distribution goes hand-in-hand with rising productivity and income, rather than simply reflecting generally low purchasing power. Disparities in inequality between urban and rural areas also require attention during policy formulation.
BPS-Statistics Kepulauan Bangka Belitung Province
